When the Going Gets Tough, the Tough Go to Strong Island

As human beings, all but the darkest and most evil of souls could never root for a global pandemic to materialize. Even the Ebola scare in 2014, for example, could not hold equities down for very long.

But if there is another scare, or something worse, on the horizon, with the latest Ebola outbreak in the Democratic Republic of Congo making headlines, we want to return to a relatively obscure but at times important name: Lakeland Industries, Inc..

Based in Ronkonkoma (try saying that five times fast with a thick Long Island accent), New York, LAKE was a name of interest for me back during the Ebola days of October 2014, since they produce HazMat suits. Without question, HazMat suits become necessary and see a massive spike in demand during any types of pandemics, let alone fearsabout pandemics.

I was fortunate to catch that super-spike, but basically stayed away from the name ever since as the chart has more in common with a single-trick biotech pony than it does a buy-and-hold growth name.

Fast-foward to the latest Ebola headlines, as well as Bill Gates stirring the pot by calling for a global pandemic which could kill 30 million people over the next decade or two, and LAKE suddenly looks as coiled as any chart in the market for a potential breakout.

On the LAKE monthly chart, below, we can see prior news-related spikes this century in the name. Earnings are not scheduled until June 13th, as an side.

But if times suddenly get tough and a pandemic breaks out, little LAKE out on Long Island may be an unfortunate hot money name to keep on your radar, once again.

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“chessNwine” has been a popular trader and financial blogger since 2009. His work has appeared in The Wall Street Journal Online Edition, Yahoo Finance, TheStreet.com, Josh Brown’s The Reformed Broker blog, AbnormalReturns.com, Barry Ritholtz’s The Big Picture blog, and the “Suggested” stream on Stocktwits.com.